MIRA INFORM REPORT

Report Date :

17.05.2011

IDENTIFICATION DETAILS

Correct Name :	RESTORATION HARDWARE INC

Registered Office :	2711 Centerville Road Suite 400, Wilmington, New Castle, De 19808

Country :	United States

Date of Incorporation :	02.04.1998

Legal Form :	Corporation for Profit

Line of Business :	Specialty retailer of furniture, bath ware, hardware, lighting, textiles, accessories, and related merchandise

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Unknown

Litigation :	Unknown

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

United States

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

GEOPOLITICS - UNITED STATES

POLITICAL DATA

ECONOMIC DATA

Form of Government: Federal

Economic Risk: Nil

Currency: USD

Branch Situation: Stable

IDENTIFICATION

Legal Name:	RESTORATION HARDWARE INC

Legal Address	2711 CENTERVILLE ROAD SUITE 400, WILMINGTON, NEW CASTLE, DE 19808, USA. (Registered Agent)
Operative Address	15 Koch Road, Suite J, Corte Madera, CA 94925, USA.
Telephone:	(415) 924-1005	ID :	2873173
Fax:	(415) 927-9133	Legal Form:	Corporation for Profit
Email:	info@restorationhardware.com	Registered in:	Delaware
Website:	www.restorationhardware.com	Date Created:	1979
Manager:	Gary G. Friedman, President and Chief Executive Officer.	Date Incorporated:	April 02, 1998
Staff:	3800 (at group level)	Stock:	NA
		Value:	NA
Activity:	Specialty retailer of furniture, bath ware, hardware, lighting, textiles, accessories, and related merchandise.

BANKS

Name of the Bank	BANK OF AMERICA
Name of the Bank	CITIBANK

BUSINESS

HISTORY
	The company was created in 1979.
PRINCIPAL ACTIVITY
	Specialty retailer of furniture, bath ware, hardware, lighting, textiles, accessories, and related merchandise.
Products/Services description:
	Furniture, bath ware, hardware, lighting, textiles, accessories It also manufactures a line of furniture for the home. The company provides its products through retail locations and catalogs, as well as through a Web site, restorationhardware.com.
Sales are:
	Retail
Clients:
	General Clientele
Operations area:
	National, International, Local
The company does not import
The company export to Canada and Columbia
The subject employs 3800 (At group level) employee(s)
PAYMENTS
	To be monitored
LOCATION
Headquarters
	The company is headquartered at 15 Koch Rd Ste J, Corte Madera, California 94925, USA.
Comments on location:
	The company was incorporated in the state of Delaware for tax purposes. However, it is headquartered at California.
Branches:
	This company has another location at 1700 Redwood Hwy, Corte Madera, CA
	100 Enterprise Pkwy, West Jefferson, OH 43162-9415 (WAREHOUSE)
	At the warehouse we also found listed the company called "Allines Staffing Professionals".
	We called the phone number found for the subject company located in Ohio: +1 (614) 379-9000. and the representative kindly confirmed that the address you provided is a warehouse of Restoration Hardware Inc, and Allines Staffing Professionals is another company located in the same building.

Shareholders - Manager - Related Companies

Shareholders Parent Company(ies):
	This company is privately held. It was publicly traded NASDAQ Stock Exchange under the symbol “RSTO”, but in 2008 it was acquired for $175 million in the year 2008, by the following private equity firms.
	Catterton Partners: 599 West Putnam Avenue Greenwich, CT 06830 Phone: (203) 629-4901
	Tower Three Partners 2 Sound View Drive Greenwich, CT 06830-6471 map Phone: (203) 485-5880.
Management:
	-Gary G. Friedman, Chairman, Chief Executive Officer and President, -Chris Newman, Senior Vice President and Chief Financial Officer, -Ken Dunaj, Chief Operating Officer, -Vivian MacDonald , Vice President and Principal Accounting Officer, -Bonnie McConnell-Orofino, Chief Merchandising Officer.

Financials - COMMERCIAL TRENDS AND FORECAST

As a private company the subject does not publish any financial statements.

We have contacted Caroline who refused to provide us with that information per security purposes

However our financial sources could provide us with the following data (estimates):

Currency	DATE
USD	2008
Turnover	722,243,000
Operating Income	(43,146,000)
Net Income	(51,936,000)

Legal Fillings

There are 184 UCC** files listed with the Secretary of State of California.

We have found a collective law suit against the subject company:

On December 17, 2009 the U.S. Consumer Product Safety Commission (CPSC) in association with Airtex Design Group Inc. and Restoration Hardware Baby And Child issued a nationwide recall of Restoration Hardware Baby And Child Roman Shades.

THE COMPANY IS NOT LISTED ON THE OFAC LIST.*

For information:

* The Specially Designated Nationals (SDN) List is a publication of OFAC which lists individuals and organizations with whom United States citizens and permanent residents are prohibited from doing business.

** The Uniform Commercial Code (UCC) is one of a number of uniform acts that have been promulgated in conjunction with efforts to harmonize the law of sales and other commercial transactions in all 50 states within the United States of America.

The UCC deals primarily with transactions involving personal property (movable property), not real property (immovable property).

It allows a creditor to notify other creditors about a debtor’s assets used as collateral for a secured transaction by filing a public notice (financing statement) with a particular filing office.

The Uniform Commercial Code Bureau files and maintains on financial obligations (including IRS liens) incurred by individuals (in business as a sole proprietor), business entities and corporations.

Rating

Local credit bureau gave a Low credit rate.

The company is in Good Standing. This means that all local and federal taxes were paid on due date.

Final Opinion

This is a large sized US company as it has currently the support of 3.800 employees. It has been operating in the market for 32 years.

As we could not obtain any financial figure for the year 2009, and the profitability for the year 2008 was negative.

There were several legal filings found against the company we strongly recommend working with GUARANTEES.

SUMMARY

FINANCIAL SUMMARY		DEBT COLLECTIONS AND PAYMENTS
Profitability	N.A.	Public Records	Unknown
Indebtedness	N.A.	Payments	Unknown
Cash	N.A.

APPENDIX

Person Interviewed
	Caroline Holly
Position
	Receptionist Customer Service Representative
Comments
	The person contacted at the company refused to provide that information on grounds of confidentiality After receiving the new address you provided, we've contacted the company to the phone number that belongs to the address you provided (+1 (614) 944-9000). We talked to Holly; She explained us that the address was that of a warehouse of the main company, therefore it didn't show on its website, though it's part of the company. Our agent also asked her about the existence of another company under the same address (Allines Staffing Professionals) And she kindly explained us that the company we found was located in the same building.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.07
UK Pound	1	Rs.72.97
Euro	1	Rs.63.57

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
----	NB	New Business	----

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.